Key Principle No. 5

Think independently – do not rely on Wall Street.

It is entirely possible to build a top-performing value portfolio without any reliance on Wall Street research.

90% of what Wall Street calls research is simply reporting of information from earning calls, or other news that affects short-term stock price movements.. The other 10% may be helpful to growth stock investors, but seldom affects stocks that value investors are interested in.

There is now enough publically available information to reach solid investment conclusions. Regulation FD, passed in 2000, has done a amazing job of “leveling the playing field” between institutional and individual investors.

We will build our model portfolio without using any Wall Street research.